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  • #65462
    ChelseaL123
    Member

    Due to me disputing things on my credit before coming to the Achieve The Dream Event 2020 it appears an old collection has gotten a new opened date of Dec 2019. The original collections started Feb 2017 with TrueAccord Collections. The last collection notice from TrueAccord was Oct 2019. Now its a company called Midwest Recovery. So it looks like they sold the debt. I have no clue what to do. Do I call and settle or do I dispute it again? Do I leave it alone? I have worked so hard to prepare for my first meeting (intake). I was completely in the clear. The event here is Feb 21st. I have less than 2 weeks. Is there anything I can do to make this irrelevant to my case?

    #65463
    Nelsont
    Member

    You can dispute it if you want. You basically have 2 options: Dispute it and remove it or settle it and pay it off.

    #65464
    ChelseaL123
    Member

    I don’t have a problem with getting it off. I’m more afraid of my 2 years with no late payments and timing being affected. Even if I pay it off, will it reset my qualification time? Will it affect my on time payments record?

    #65465
    Nelsont
    Member

    You will be fine.

    When was your last missed payment? Actually missed payment. Not collection activity, phone call, letter, etc. But a bill that you did not pay. That’s when the timeline starts for missed payments.

    The collection activity timeline is only for unpaid/unresolved debt. If you are in a payment plan then you are resolving it. If you paid it off then you have no unpaid debt.

    #65467
    ChelseaL123
    Member

    Whew,
    Okay so the last missed payment would have been in late 2015. Then it moved to collections with my first contact being Feb 2017. I never responded but they’ve sent so many emails to show the history. So what I’m gathering is that I should just settle and pay the settlement in full like it was never there?

    #65468
    Nelsont
    Member

    Well your collections will always be on your report even after being settled/paid in full for up to 10 years after the last activity (7 I think in most cases). It will just be marked as either paid or paid: not in full/settled. The only way to remove it from your report is file a dispute because the account is showing up in error (identity fraud or paid accounts that don’t show as paid are examples).

    So for the missed payments you’re good. But because you have recent activity on the collections you will need to address them. That means paying it off. As long as you are in a payment plan you can’t be denied qualification for the recent collection.

    #65469
    ChelseaL123
    Member

    Ok. It would be wishful thinking to be qualified at my first meeting, but I feel so much better knowing they will take into account that I haven’t had a “late payment”. I will go ahead and take action to get it resolved now. Thank you so much.

    #65487
    Peapod0609
    Member

    You can’t really “get qualified” at your intake meeting. Best case scenario is you have everything together and they can send you for qualification, which could take a few days or even a week or two with underwriting.

    But yes, if you pay off the collection, it won’t count against you. You might be required to write an LOE (Letter of Explanation) detailing what it is, why it was on your credit report, and what you did about it, but that is it.

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